Overpayments recovery still causing heartache for lone parents

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22/05/07 Figures published today by Her Majesty's Revenue and Customs(1) show that nearly a third of tax credit claimants in 2005-06 received an overpayment, including 299,000 awards to lone parent families.

29 per cent of awards were overpaid in 2005-06, compared to 30 per cent in the previous year.
Nearly half a million (494,000) overpayments were worth £1,000 or more.
The greatest number of overpayments were to families in work, with 1018,000 overpaid awards to families with children claiming the Working Tax Credit.

Commenting on the figures released today, Chief Executive of the charity Chris Pond said:

"Tax credits have helped many lone parents and their children, but today's worrying overpayment figures show there is still a long long way to go to ensure that the system really delivers. The Government has introduced improvements in the system to reduce the number of over payments but we won't know if these have really taken effect until next year's figures come out; in the meantime, Government must make sure it is treating families fairly, and not asking them to pay back money paid to them due to an error by the Revenue itself"

Notes to editors:

(1) The figures are available on the HMRC website here: www.hmrc.gov.uk/stats/personal-tax-credits/cwtc-payments-0506.pdf

(2) One Parent Families is the national charity supporting Britain's 1.9 million lone parent families.

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